Cash Collections—Direct Method
Oakmont Inc. reported accounts receivable of $28,000 on its December 31, 2013, balance sheet. On December 31, 2014, accounts receivable had decreased to $15,500. Sales for the year amounted to $68,500.
What is the amount of cash collections that Oakmont will report in the Operating Activities section of its 2014 statement of cash flows assuming that the direct method is used?
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